Public-Private Partnerships

Public-private financing partnerships are an essential part of most major efforts to foster high-quality economic development, community revitalization and infrastructure projects. SB Friedman offers a unique, rigorous approach to facilitation, evaluation and structuring of these partnerships, whether on behalf of government, private or institutional/nonprofit clients.

Our core services in this area include:

  • Feasibility testing of proposed public-private development efforts and financial arrangements
  • Consulting on special financing tools such as Tax Increment Financing (TIF), New Markets Tax Credits and Special Districts
  • Negotiation support and deal structuring
  • Securing public-private assistance for private applicants in need of gap financing/incentives

Services

Our firm has core expertise in the use of Tax Increment Financing (TIF) to facilitate high-quality development, redevelopment and infrastructure projects. TIF is a tool that leverages the incremental growth in valuation or tax revenue within a geographic boundary to provide public financing for infrastructure and other improvements that support community revitalization, economic development and elimination of blight.

New Markets Tax Credits (NMTCs) are a relatively new financing tool, primarily used for commercial, industrial and nonprofit sponsored development projects in Low-Income Census tracts. NMTCs can also be used to support financing for operating businesses in these areas. In aggregate, the NMTC benefit generally ranges from 15-25% of total project costs, provided the deal is structured efficiently and enough NMTC credit allocation can be identified.

SB Friedman assists clients with feasibility analyses, visioning, public outreach, financial analysis, boundary definition and other technical aspects of establishing and amending various special taxing/incentive districts. Our firm has assisted with the development of these districts in a variety of environments, including big city commercial corridors, urban industrial areas, and downtowns in suburban and smaller communities.

Bond Financing and Loan Guarantees

We are experienced in preparing cash flow projections for bond financing, pay-as-you-go arrangements, tax abatements and other financings. Our expertise includes:

  • Revenue projections and feasibility studies for bond issuances
  • Risk analysis and sizing for general obligation-enhanced financings
  • SSA revenue projections for budgeting purposes

Other Finance Tools:

We assist our clients in using cutting-edge tools to implement projects in the current challenging economic climate. We consistently track, research and utilize such emerging tools as:

  • Recovery Zone Bonds and related Stimulus programs
  • New grant sources for environmental cleanup
  • New ways to package and combine funding sources, including HUD 108 loans, grants, tax credits, etc.
  • Innovative publicly financed lending structures
Administration & Asset Management Services

We provide a diverse range of services related to administration of complex and specialty public-private financing tools including TIF, New Markets Tax Credits and other special districts. The firm has experience in such areas as:

  • Financial asset management for New Markets Tax Credit loans and special purposed entities
  • Review/certification of TIF-eligible expenditures
  • Review of revenue calculations/flow for TIF, SSA and other special districts
Affordable Housing Finance

Our firm has had extensive experience in assisting developers and municipalities with financing affordable housing projects. Since 1994, we have performed site and market studies consistent with the requirements of the Illinois Housing Development Authority and the City of Chicago Department of Housing. We pioneered the use of Tax Increment Financing (TIF) to support a layer of financing in low income housing projects. Over the years, the firm has served as market analyst or TIF consultant for over 3,000 units of affordable housing.

Infrastructure Finance and Value Capture

As the state and federal share of funding for transportation projects continues to diminish, there is an increasing need for innovative financing techniques such as value capture for transportation projects. Value capture financing is one way to generate upfront local funding by capturing a portion of the real property value increases that would be generated by transportation improvements.  Our firm has expertise in assessing and crafting the appropriate value capture mechanism(s), and quantifying the supportable revenue stream that can help generate funding for new transportation projects.

Additionally, we have assisted developers and municipalities with project-specific infrastructure financing, including a strategy to support an omnibus bond for on-site and off-site infrastructure improvements. Tools available include Tax Increment Financing, community improvement districts (known as Special Service Areas in Illinois), business development districts, optional sales taxes, and special assessments.  These types of bootstrap financing techniques can be used wherever infrastructure investments will stimulate or facilitate development and can be used for all types of public improvements.